Toilets Drive the Economy: Co-Creating a "Sanitation Economy" Starting in Africa
Tokyo (June 8, 2026) - The Japan International Cooperation Agency (JICA) and LIXIL Corporation (LIXIL) signed a Memorandum of Understanding (MOU), establishing a framework for collaboration and cooperation aimed at solving water and sanitation challenges in developing countries. The MOU was signed by Akihiko Tanaka, President of JICA, and Kinya Seto, Director, Representative Executive Officer, President and CEO of LIXIL.
(Left: Akihiko Tanaka, President of JICA / Right: Kinya Seto, President and CEO of LIXIL)
This partnership aims to further advance initiatives in the WASH (water, sanitation and hygiene) sector, delivering sustainable sanitation solutions through a public-private collaboration.
The reality is that the sanitation environment we take for granted in Japan and many parts of the world remains a life-threatening challenge for many people.
Globally, access to safe toilets and handwashing facilities is still severely lacking in many regions, making the improvement of the sanitation and hygiene environment a critical development issue deeply connected to health, education, nutrition, gender equality, peacebuilding, and humanitarian assistance. For instance, diarrheal diseases caused by unsanitary conditions claim the lives of more than 1,000 children every day, totaling approximately 440,000 annually. Furthermore, the increasing frequency and severity of floods and droughts driven by climate change, the spread of infectious diseases, and the rising number of refugees and internally displaced persons have made the resilience of water and sanitation services more crucial than ever.
JICA has supported the improvement of water and sanitation services through water supply, sewerage systems, hygiene education, and human resource development, leveraging its cooperative relationships with national governments and on-the-ground networks. Meanwhile, LIXIL, through its social business SATO, provides accessible and affordable toilets and collaborates with various partners to build self-sustaining ecosystems managed locally—spanning manufacturing, sales, and installation. Through these efforts, LIXIL has successfully improved sanitation and hygiene for over 100 million people across 59 countries and territories to date.
JICA President Tanaka (left) and LIXIL CEO Seto (right) introducing SATO products.
Under this MOU, the partnership will combine JICA’s expertise in policy and institutional cooperation and its relationships with partner country governments will be combined with LIXIL’s capabilities in product development, market creation, and business expansion. This synergy will drive the creation of a "Sanitation Economy," where sanitation services circulate self-sustainingly on the ground. Moving beyond mere assistance, this initiative strives to build a mechanism where local communities manufacture, sell, install, maintain, and continuously use these products.
Specifically, the initial phase will focus on homes, schools, healthcare facilities, as well as refugee and host communities in Kenya and Malawi, targeting the widespread adoption of safe toilets and handwashing facilities and the establishment of hygiene habits. Concurrently, the partnership will cultivate local human resources to handle the sales, installation, and maintenance of sanitation facilities and establish supply chains, firmly embedding sanitation services as sustainable businesses.
In Kenya, focusing on the Kakuma refugee camp and its host commnuities, the initiative will align with the Kenyan government's "Shirika Plan," which aims to enable refugees to particiate in economic and social activities. By linking JICA’s water supply infrastructure development with LIXIL’s SATO business, the partnership will expand market-driven sanitation improvements to provide inclusive water and sanitation services for refugees and host communities alike.
In Malawi, the partnership will aim to develop resilient water and sanitation services that function even during prolonged inundation caused by natural disasters, promoting initiatives that include the introduction of SATO products in alignment with JICA’s ongoing projects.
These initiatives do more than solve local challenges; they also contribute to international stability and infectious disease control, ultimately benefiting the security and prosperity of the entire world, including Japan. Furthermore, the partnership is expected to boost the global deployment of innovative technologies and expertise, while strengthening trusted partnerships.
By pairing JICA’s policy-formulation support through national government networks with LIXIL’s business solution and development capabilities, the partnership will drive broad societal implementation that would be difficult for any single entity to achieve alone.
Moving forward, using the achievements in Kenya and Malawi as a starting point, this "Sanitation Economy" model will be expanded to other regions, aiming to provide safe and hygienic toilets to 500,000 people across Africa, the Middle East, and Asia.
Comment by Akihiko Tanaka, President of JICA
"Global challenges surrounding water and sanitation remain severe, and many people still lack access to safe sanitation and hygiene services. It has also become clear that simply building facilities does not ensure that hygiene practices take root, highlighting the urgent need to create mechanisms that function sustainably on the ground. This partnership with LIXIL brings together JICA's strengths in institutional development and government cooperation with LIXIL's expertise in product development, market creation, and field-level business expansion. By doing so, we aim to move beyond conventional aid and realize a 'Sanitation Economy' where sanitation services can be sustained locally. By accumulating concrete achievements on the ground, starting with Kenya and Malawi, we will deliver sustainable changes to the lives of people in developing countries through a model of Japanese public-private partnership."
Comment by Kinya Seto, President and CEO of LIXIL
"Globally, approximately 3.4 billion people still lack access to safely managed sanitation. LIXIL has set a goal to improve sanitation and hygiene for the 'next 100 million people' by the fiscal year ending March 2031. To address complex and profound global challenges, including sanitation access, refugee self-reliance, and climate change, we must further accelerate the creation of a market-driven 'Sanitation Economy' that grows autonomously on the ground, leveraging this new public-private partnership with JICA and national governments."
Reference: Pillars of Collaboration
1. Conducting Surveys and Activities to Improve Water and Sanitation Challenges in Developing Countries
Collaboratively conduct surveys and implement improvements regarding water and sanitation challenges that
manifest during refugee crises, infectious disease outbreaks, and under the impacts of disasters and climate
change, in linkage with projects including technical cooperation, various surveys, and financial assistance.
2. Implementing Awareness and Educational Activities on Water and Sanitation Challenges in Developing Countries
Conduct awareness campaigns, development education, training, and events both domestically and internationally
to promote understanding and drive behavioral change regarding water and sanitation, aiming to achieve the SDGs.
3. Exchanging Information on Water and Sanitation Challenges in Developing Countries Continuously exchange
information on water and sanitation needs and countermeasures specific to each region and issue, to enhance the
quality of projects and make social implementation more effective.
About the Japan International Cooperation Agency (JICA)
JICA is the bilateral international cooperation agency responsible for the core implementation of Japan's Official Development Assistance (ODA)-including technical cooperation, ODA loans, and grant assistance to resolve challenges faced by developing countries, operating in over 150 countries and regions. The challenges of the international community are closely related to Japan. By cooperating with partners both domestically and internationally to tackle these issues, JICA contributes to global peace and prosperity, as well as to the further development of Japanese society.
(About JICA: https://www.jica.go.jp/index.html)
About SATO
SATO is an award-winning social business of LIXIL. To date, it has improved the lives of over 103 million people across 59 countries and territories. SATO's purpose is to empower people worldwide to have better lives and enjoy brighter futures through innovative hygiene and sanitation solutions. SATO offers affordable sanitation and hygiene products, such as the SATO Pan and the SATO Tap (a handwashing solution), that meet the needs and aspirations of customers living in environments without running water and sewage infrastructure.
(About SATO: https://sato.lixil.com/)
To learn more about LIXIL’s Impact Strategy, see here.
To learn more about SATO‘s solution for the humanitarian sector, see here.